The Coral Gables Real Estate Market Report for Q4 2020 | What to Expect Going into 2021?

Coral Gables Homes for Sale | What to Expect Going into 2021?

Those who read part 3 of our Q2 and Q3 Miami real estate report (The Miami Real Estate Market before and during Covid-19) already know the strength of the Gables market. We expected a strong year, but nothing could have prepared us for the year we actually got! We are receiving daily relocation calls and most of these potential buyers are inquiring about Coral Gables real estate. Inventory has decreased at a rapid pace and we have now reached a point at which we are experiencing a shortage of good-quality homes. We have started to reach out to off-market owners to see if they are willing to sell their home in order to provide our clients with a better selection of Coral Gables homes for sale!

Coral Gables Real Estate Market Report | Q3 and Q4 of 2020

Miami is experiencing a very high amount of relocations from the high-tax states. These buyers are mostly focused on the areas of Coral Gables, Coconut Grove, Pinecrest, Key Biscayne and Miami Beach. Since Coral Gables is home or close to Miami’s best private schools many families opt for a residence near these schools. Furthermore the Gables offers some of Miami’s most desired and exclusive waterfront mansions as well as a good amount of mansions that are located in exclusive gated communities with unobstructed ocean views. Coral Gables is one of Miami’s most desired neighborhoods and this is what we experienced in the Coral Gables Real Estate Market in the last 6 months:

Sales volume is up compared to 2019 (76%), with the luxury market really seeing a surge in sales. In the $5M+ market we recorded 20 sales with 9 sales in the $10M+ range, representing a 200% increase in sales compared to the same period last year. We also see that the average prices per SF have gone up and the discounts on listing prices have slightly decreased. Maybe the most important table here is the one with the months of inventory. The months of inventory provide you with information about the supply and demand relationship or the absorption rate of a market. The months indicated here are the months it will take to sell all available product if no new product were to enter the market. Between 6 and 9 months is generally considered a neutral or balanced market while less than 6 is a sellers market and more than 9 a buyers market. As you can see the Gables’ inventory decreased considerably and the current inventory levels show a very bullish market. Some real estate studies mention that in the luxury market only 18+ months indicate a buyers market and indeed, 17 months of inventory for a $10M+ market is really low for Miami standards.

The Coral Gables Real Estate Market in 2021

As we are approaching 2021 we have not yet experienced a slowdown in the demand for Coral Gables homes for sale. More and more tax migrants are flocking into Miami mostly from NYC, New Jersey, Chicago and San Francisco. As mentioned before we receive daily calls for Coral Gables real estate and we do not foresee a decline in the demand. This is not just a temporary trend that fades away overnight. We believe this migration will continue to happen, because we do not just see individual families making the move. These days more and more prominent companies are moving to Miami and as they make the move so does their management team with their families. Many companies have already moved here and this month we have heard of  prominent tech investors that are moving to Miami  as well as several Wallstreet names like Goldman Sachs, Elliott Management Corp and Citadel. Families are moving to Miami for its great lifestyle and favorable tax structure and are positively surprised by its development of high-end office space and superb private schools. With the current hype around moving to Miami as well as word-of-mouth marketing from families that already made the move, we expect 2021 to be equally bullish.

Coral Gables Real Estate Market Report: Which Coral Gables Homes sold in 2020?

Please find below several homes that closed in the last year to get a better glimpse of what is selling!